Interview
Issue 16
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December 18, 2014
Distributed with Times of Malta
THE REFORMS AT THE MFSA INCLUDE THE SETTING UP OF THE FINANCIAL SERVICES ARBITER. Photo: Chris Sant Fournier
KPMG recently announced a €26 million offer to acquire Crimsonwing. Richard Fleming, head of advisory at KPMG UK, speaks about the implications . see pages 10 and 11 >
INDUSTRY FOCUS Valletta’s revival is gathering momentum with restoration works, the Piano project, luxury boutique hotels, increased night-life and a boom in the property market. see page 3 >
Consumer protection reforms under way at MFSA Anthony Manduca The Malta Financial Services Authority is to carry out a number of reforms in 2015 in order to enhance the protection of consumers where these are disadvantaged in transactions with financial service providers, chairman Joseph Bannister has told The Business Observer. These will include an enhanced institutional framework, an improved regulatory framework and a strengthened enforcement regime. “During the past year the MFSA, following the introduction of the Single Supervisory Mechanism under the European Central Bank, has been working on the introduction of legislation and practice wide-ranging initiatives at EU level
which underpin a stronger focus on good customer outcomes in investment services, insurance and banking,” Prof. Bannister said. The MFSA chairman said the current international emphasis on prudential regulation, that seeks to promote stable and fair markets, is a principle which also drives consumer confidence and fosters positive financial outcomes for consumers. “However, a new emphasis on the conduct of business was the initiative taken by the G20 in February 2011, which called on the OECD and other international institutions to develop common principles on consumer protection in the field of financial services. “The creation of a separate conduct regulator in the UK, the US and
“e MFSA is to embark on a major internal restructuring exercise” other jurisdictions reflects this new prioritisation for conduct of business in financial services,” he said. He said the MFSA is to embark on a major internal restructuring exercise to reflect these international priorities in 2015. He added: “The MFSA is currently preparing legislative
NEWS
proposals for the adoption of a conduct-of-business regime, and the revised MFSA Act will also establish a more defined enforcement process and an internal audit function as required under the ECB to enhance the systematic evaluation of MFSA’s governance processes, internal controls and risk management.” Prof. Bannister said the proposed legislative changes together with the set of rules for enforcement and conduct-ofbusiness rules will be published for consultation in 2015. “The proposed changes will be supported by the setting up of the Financial Services Arbiter. The MFSA has made recommendations to the government for the setting up Continued on page 3
For 2015 the unions want an end to precarious work practices and more emphasis on attracting investment while employers want fiscal consolidation and growth. see pages 5 and 6 >
CASE STUDY Boutique hotels are all the rage but Hospitality Ventures warns that there is only a fine line between profit and loss in this segment. see pages 12 and 13 >